Match the Following Terms to Their Correct Definition

question 36

Multiple Choice

Match the following terms to their correct definition.
-A performance measures that assesses the growth in equity from operating activities.

• A)Articles of incorporation
• B)Common stock
• C)Contributed capital
• D)Corporate charter
• E)Current dividend preference
• F)Date of record
• G)Declaration date
• H)Dividends in arrears
• I)Equity
• J)Exercise (strike) price
• K)Liquidating dividend
• L)No-par stock
• M)Payment date
• N)Preferred stock
• O)Prior period adjustment
• P)Return on common equity

Understand the principles of least-cost combination of resources and its effects on profit maximization.

Comprehend the decision-making process regarding employment of resources based on their marginal costs and marginal revenue products.

Learn the marginal productivity theory of resource demand and its implications for income distribution.

Understand the conditions under which hiring additional labor is cost-effective or profit-maximizing.

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Definitions:

Variable Costs

Expenses that change in proportion to the activity of a business, such as materials and labor costs.

Fixed Costs

Expenses that do not change with the level of goods or services produced over the short term, such as rent, salaries, and insurances.

Selling Price

The amount of money for which a product or service is sold to customers.

Variable Costs

Costs that vary directly with the level of production or service volume, such as materials and labor.